Eligibility exclusions

[Guest yukon]

Can someone give me a definition of "Casual Employee"? I looked it up in Tripodi's ERISA Outline book, but can't find one.

Thanks!

[WDIK]

In many instances, it is used to describe independent contractors.

[Archimage]

An employee that dresses in t-shirts and jeans.

[Kirk Maldonado]

or is barefoot.

[Guest yukon]

So...in short, my exlcuded classes of employees could include:

1. Leased employees according to IRC Sect. 414(n)(2) and 414(o)(2)

2. Union employees according to IRC Sect. 7701(a)(46)

AND

3. Barefoot, T-shirt- & Jeans-wearing employees according to the SMART@$$ES on BenefitsLink.

Do I have that right?

[R. Butler]

So...in short, my exlcuded classes of employees could include:

1.  Leased employees according to IRC Sect. 414(n)(2) and 414(o)(2)

2.  Union employees according to IRC Sect. 7701(a)(46)

AND

3.  Barefoot, T-shirt- & Jeans-wearing employees according to the SMART@$$ES on BenefitsLink.

Do I have that right?

If Casual Employees are exluded in the plan document then what you are saying seems to be correct; unless of course the business is located in Kentucky. T-shirt & jeans are formal business attire & shoes are always optional for us.

[Guest yukon]

You guys are a real hoot.

Actually, being from Texas, I'm thinking about simplifying my classifications to:

A) Armed

and

B) Unarmed

I figure we'll go ahead and not exclude the "Armed" folks.

btw: WDIK - thanks for your serious response. The ERISA Ouline book has a brief mention on "Casual Employee" (with no real definition), then immediately following that is a section on independent contractors. Ergo, my confusion on the issue.

[Guest 5500]

Not sure if this what you are looking for but FWIW, "casual labor" as used for employment tax purposes means services that are not in furtherance of the employer's business. Exempt from FICA. Does not apply to services for corporations.

[pmacduff]

Many years ago (30+) my Mom worked for a big oil company in a program they called "casual labor". She was paid directly by the company, not through a third party. I think that the group was actually like the "per diems" of today; i.e., they were called in for certain projects, no guarantee of hours, no benes, etc. BTW - they more often than not wore blue jeans and sneakers........

oh yeah blue jeans, sneakers AND tee-shirts..didn't want anyone to think it was risque' or anything.........

[WDIK]

The U.S. Small Business Administration website has a link to a "Handbook for Small Business" that contains the following excerpt:

If one asks either the IRS or a state department of revenue for a definition of casual labor none will be forthcoming. This means that the IRS and other agencies do not recognize the term and will not define it.

www.sba.gov/library/pubs/mp-31.pdf

The handbook also offers a caveat:

Although this publication has been prepared by competent, knowledgeable and experienced contributors, it should not be used as a substitute for professional or other authentic sources in specific situations. As pointed out repeatedly in the book, legal or other expert assistance should be sought when required.

[Locust]

The problem with the term "casual employee" is the same as with "temporary employee" and "part-time employee" - it has no accepted meaning with the result that in order to apply it in the plan the employer must decide who is casual and who is not on an arbitrary basis. Consequently, use of it, like the use of temporary and part-time, results in impermissible discretion for the employer. IMO it should be deleted from the plan or defined in such a way that it is not subject to discretion.